Fully Enabled Project Portfolio Management (PPM)

Fully Enabled Project Portfolio Management
(PPM)
June 2009
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upon request.
Pcubed Presenters
 Bill Raymond – VP Products & Services;
[email protected]
 Ron Thompson – VP Americas Oil & Gas;
[email protected]
Webcast Agenda
 About Pcubed
Part I
 Overview of Project Portfolio Management (PPM)
 PPM evolution, challenges and efficient frontier
 PPM best practices
Part II
 Pcubed Delivery Hub demonstration
 Q&A
About Pcubed
About Pcubed
Ann Arbor
Chicago
Seattle
San Francisco
Paris
Toronto
London
Cologne
New York
Los Angeles
Houston
Hong Kong
•
Leading global provider of full-service project
and portfolio management solutions
•
15 offices and 300 people worldwide, supporting
over 2,500 client initiatives since ‟94
•
Involved in over $55bn of client change portfolios
•
Provide world-class methodology, tools and
services to transform PPM processes
•
Accelerate complex project / portfolio initiatives
reducing the cost and risk of change
•
Clients from over 100 of the Fortune 500
Brisbane
Sydney
Melbourne
Canberra
Client
Program Leadership
 2004 Athens Olympics
 2006 World Cup
 2012 London Olympics
Portfolio Management Services
Fortune 5 Oil &
Optimization of capital project portfolio –
Gas Company
Global Refining
Global Speciality
Portfolio optimization, time to market
Chemicals Mfr.
improvements through PM process
UK Government
Optimization, Benefits management,
Program
performance management
International
Optimization & Portfolio Delivery
Investment Bank
Methodology
Fortune 15
Optimization & Portfolio Delivery
Consumer
Methodology
Products
Overview of Project Portfolio Management
(PPM)
What Is Project Portfolio Management?
Project Portfolio Management is an integrated, continuous process of identifying, selecting and managing
a portfolio of projects in alignment with key performance metrics and strategic business objectives
Top Down
Top Down
Portfolio
Management
Do the Right
Things
Generation
& Capture
Refine &
Manage
Review &
Screen
Pcubed PPM
Framework
Execute &
Realize
Optimize &
Select
Plan &
Design
Project
Management
Bottom up
Do Things
Right
Bottom Up
Unrealized Value Potential
DOING THE RIGHT THINGS
0%
Fully Enabled
Portfolio Management
Unrealized
Value
Realized Value
Value from
Enterprise
Project Management
Value from Portfolio
Management
100%
Project Management
DOING THINGS RIGHT
100
%
How PPM Helps The Organization
Portfolio
Management
Alignment
with Business
Objectives
Executives and
Portfolio Managers
Enterprise
Project
Management
Visibility &
Control
PMO, Resource and
Project Managers
Demand Management
Portfolio Selection
Capacity Planning
Portfolio Reporting
Resource Management
Financial Management
Project Reporting
Project Scheduling
Program Management
Project Team Members
Collaboration
Time Reporting
Team Collaboration
Work
Management
Processes and Tools
Realized Benefits
“Our projected Year One ROI is
estimated at $3-4M just by incorporating
portfolio management best practices to
select and deliver on the „Right‟ projects"
Reduced Execution Risk
Improved Effectiveness
“Our EPM deployment gives our
executives easy access to the clear
and concise information they need
to manage our complete portfolio of
projects.”
Generation
& Capture
“We are fully committed to integrated
PPM to manage our largest IT and
corporate growth projects.”
Refine &
Manage
Review &
Screen
Execute &
Realize
Optimize &
Select
Plan &
Design
Maximum Value
Improved Visibility
“We are moving
away from what I
consider an ad hoc
model of planning
where we would initiate
a project without considering the effect
it would have on the greater
organization.”
Benefits of Portfolio Optimization - IDC
 A recent IDC Survey* of organizations successfully using Project
Portfolio Management:

Effective use of budget: Cost per project reduced 37%

Delivery of projects with real business value: Redundant projects dropped 78%

Effective use of staff resources: Resource productivity increased 14%

Improved project success: Project failure rate dropped 59%

Return on PPM investment: Payback occurred in 7.4 months
*Measuring the ROI of PPM (Project and Portfolio Management): An IDC Report
Benefits of Portfolio Optimization Forrester
 Independent Analyst: Forrester*
In a … number of firms today, IT management is using application portfolio management (APM)
tools to shave 10% to 30% or more from the maintenance budget, achieving ROI within the first 12
months. These savings provide the opportunity to increase innovation capacity by 30% to 95%.
*Building The Business Case For APM, Forrester, October 2005
"Like dangerous curves on a
racetrack, economic
downturns create more
opportunities for companies
to move from the middle of
the pack into leadership
positions than any other time
in business.“
Wall Street Journal Sept 2008
PPM evolution, challenges and efficient
frontier
Traditional PPM Pains

Poor portfolio planning at a strategic level

Managing too many of the wrong projects

Unable to prioritize critical projects or kill the
unnecessary ones

No defined processes for reviewing ideas and
business cases

Senior executives driving personal agendas

Attempting too many projects simultaneously

No benefits realization processes

Lack of overall visibility of risks, issues, and
conflicts

Inability to proactively manage the portfolio

Lack of senior sponsorship
PPM Climbing the Executive Agenda

In 2005, Aberdeen identified PPM solutions as a missed opportunity for almost
50% of manufacturing companies surveyed

Overwhelmingly, project portfolios inconsistently addressed risk, resource
constraints and were often not aligned with strategy or enabled by technology

Project execution was ad hoc, there was little to no global planning, visibility,
enterprise management or portfolio integration

Today, the landscape is quickly changing – executive attention is driving
widespread PPM adoption while enabling technologies are more accessible
Projected Growth*
2008
2010
Growth
Project / resource planning
57%
87%
52%
Project / program execution
58%
88%
52%
Portfolio management
48%
73%
53%
Source: Aberdeen Group, August 2008
Growing PPM Landscape
PPM Well Executed
Final
Capital
Budget
Strategic
Value
Very little loss
of strategic impact!
Initial
Capital
Budget
Efficient Frontier
Cut
Resource
Constrained
Projects
Cut High
Execution
Risk
Projects
Constraint
($’s Capital, Resources, Risk)
PPM best practices
Establish Enterprise PPM Governance Model

Establish enterprise governance
framework that allows for any needed
variability at division / business unit level

Enforce enterprise process
standardization to maximize efficiency
and effectiveness of enterprise PPM life
cycle

Enforce enterprise technology
standardization and use to minimize
technology cost and maintenance

Promote intra-company collaboration for
knowledge sharing and continuous
improvement

Establish clear organizational roles /
responsibilities for PPM execution at
corporate and division / BU levels
“Firms with above-average IT governance following a
specific strategy had more than 20 percent higher profits
than firms with poor governance following the same
strategy.”
“IT Governance: How Top Performers Manage IT Decision Rights for Superior Results,”
Peter Weill and Jeanne W. Ross, Harvard Business School Press
“On average, when moving from poorest to best on
corporate governance, firms could expect an increase of 10
to 12 percent in market value.”
The McKinsey Quarterly
Enable PPM Governance & Execution with
Integrated Technology
Delivery
Hub Data
Warehouse


Project planning & execution tools are
fully integrated with portfolio
management tools
Project planning and resource allocation
performed with real-time view of existing
demands and constraints

Enterprise project visibility and status are
available real-time via management
dashboards and reporting

Enterprise drill down capability to the
project level to assess risks, issues and
status

Real-time tracking and comparison of
budget, actual and forecast data via ERP
integration
Delivery
Hub
Financials
Integration
Suite
Visibility
Intelligence
Governance
& Control
Delivery
Hub
Process Kit
Delivery
Hub
Automated
Governance
Incorporate sophisticated, comprehensive
analysis into portfolio prioritization and selection

Stakeholders agree on key business drivers and derive their
relative weightings via enabling technology

Projects are initially prioritized based on their strategic value

Project portfolios are then optimized based on financial, risk
and other criteria

Analysis capability should include

Strategic value

Financial value

Competitive & Market assessment

Development & Technical risk

Commercial risk

Budget & resource constraints

Technology should allow rapid, real-time “what if” analysis

Underperforming, non-strategic projects identified and
eliminated
Demo
Delivery Hub Value Proposition
Delivery Hub
Data
Warehouse
 Enables web-based
collaboration against a formal
process using SharePoint
 Workflow will drive adherence to
governance standards
 Centralized database to provide
visibility via reports and
dashboards
 Fully integrated with leading
PPM technologies
 Simple implementation, rapid
adoption
Delivery Hub
Financials
Integration
Suite
Visibility
Intelligence
Governance
& Control
Delivery Hub
Process Kit
Delivery Hub
Automated
Governance
Q&A
For More Information:
Pcubed Delivery Hub - Bill Raymond; [email protected]
Pcubed Services - Ron Thompson; [email protected]